Provincial Economy Performing Well Year-to-Date

The economy of Newfoundland and Labrador is showing strength, growth and optimism.

Employment has been particularly strong through the first six months of the year, increasing 3.8 per cent through June, compared to the same period last year. The unemployment rate has been at or near historic lows in each month so far this year.

Retail sales increased by 4.8 per cent through the first five months of the year, compared to the same period last year. The number of new motor vehicles sold increased by 22.6 per cent compared to January to May 2023, while the value of sales increased by 21.5 per cent compared to the same period in 2023.

Housing starts in the province totaled 672 units over the January to June 2024 period, up 106.8 per cent (or 347 units) compared to the corresponding period in 2023.

Recent decreases in the inflation rate (currently 2.3 per cent) and in the Bank of Canada interest rate (currently 4.5 per cent) bodes well for continued growth for the remainder of the year.

The province surpassed population targets for 2026, welcoming more than 5,400 permanent residents in the last year. Similar numbers are expected this year.

Following credit rating and outlook upgrades in 2022 and 2023, DBRS Morningstar, S&P Global Ratings, and Moody’s have Newfoundland and Labrador’s credit rating at A/A1, with a stable outlook.